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<SPAN
class=363535114-14022003>Totally agree. Probably misunderstood your first
message below which appeared to be a blanket condemnation of buying on
weakness.
<SPAN
class=363535114-14022003>
<SPAN
class=363535114-14022003>Regards,
<SPAN
class=363535114-14022003>
<SPAN
class=363535114-14022003>Michael
<SPAN
class=363535114-14022003>
<BLOCKQUOTE
>
<FONT face=Tahoma
size=2>-----Ursprüngliche Nachricht-----Von: ira
[mailto:mr.ira@xxxxxxxxxxxxx]Gesendet: Friday, February 14, 2003
15:44An: realtraders@xxxxxxxxxxxxxxxBetreff: Re: [RT]
Countertrend trading (was: ESH3)
A contra trend trade is based upon a signal, not
upon an assumption. You are basing the trade upon some system that says
it is going lower. You are not buying on weakness which means it is
going lower or selling on strength because you believe it should go
lower. Most contra trend trades are established when a trend trade has
reached a target that should act as resistance for the current move.
Whether that target is a measured move, a Fib. number, a support or resistance
level, that has proven its worth in the past. Guessing, trading upon a
gut feeling, trading on news, chasing a trade and many other no nos are used
every day and cost people a lot of money. Ira
<BLOCKQUOTE
>
----- Original Message -----
<DIV
>From:
<A title=MikeSuesserott@xxxxxxxxxxx
href="">MikeSuesserott@xxxxxxxxxxx
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="">realtraders@xxxxxxxxxxxxxxx
Sent: Friday, February 14, 2003 6:26
AM
Subject: [RT] Countertrend trading
(was: ESH3)
<SPAN
class=601390314-14022003>Hi Ira,
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>I certainly appreciate your point, but a point
can also be made for occasional countertrend trading, if done with
correct stops. For instance, most Wolfe Waves start out counter to the
prevailing trend. If you remember the wave that I posted here a few
days ago - though it did not quite make it to the target line because of the
Al Jazeera video tape news, still the pattern if entered around the #5 point
made some good money on a small risk.
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>One way to handle counter trend trades is by
looking for trend confirmation on a smaller time frame. Like when entering a
counter trend pattern on a 30 min. chart, one might wait for the new
direction to prove itself as a trend on a 5 min. chart.
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>Regards,
<SPAN
class=601390314-14022003>
<SPAN
class=601390314-14022003>Michael Suesserott
<SPAN
class=601390314-14022003>
<BLOCKQUOTE
>
<FONT face=Tahoma
size=2>-----Ursprüngliche Nachricht-----Von: ira
[mailto:mr.ira@xxxxxxxxxxxxx]Gesendet: Friday, February 14,
2003 06:34An: realtraders@xxxxxxxxxxxxxxxBetreff:
Re: [RT] ESH3
It absolutely boggles my mind why a trader
would buy weakness. If it is falling, let it fall. If you
think it is going to rise, wait for it to prove to you that it is going to
do just that, rise. Then buy. If you are going from
Chicago to New York, would you go by Denver and San Francisco first.
Why not just hop the train as it leaves the station for New
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